Overseas investors have pumped in nearly Rs 6,000 crore in the Indian capital markets in a fortnight ended September 13, mainly on the back of newRBI Governor Raghuram Rajan announcing various measures to boost the depreciating local currency and revive economic growth.
Inflows in equities were about Rs 6,372 crore ($966 million) during September 2-13, while there was a pull-out of Rs 382 crore ($64 million) from the debt market, translating into net inflows of Rs 5,990 crore ($922 million), as per latest data available with market regulator Sebi.
In August there was a net withdrawal of nearly Rs 16,000 crore (about $2.5 billion) from the domestic capital markets. Read More
A total of 50 corporate debt securities got the top investment grade credit ratings in the first four months of the current fiscal — the lowest number of such high ratings for this period in over ten years.
The number of debt issues that got non-investment grade ratings between April-July period of current fiscal 2013-14 also declined to 377, from as many as 1,249 in the same period of the previous financial year, according to data compiled by Sebi, which regulates credit rating agencies (CRAs) in India.
Various CRAs assigned a total of 720 long term corporate debt securities between April-July this fiscal, including ‘highest safety investment grade (AAA)’ rating for 50 of them.
The 50 AAA-rated issues together involved debt securities worth about Rs 4.52 lakh crore, as against a total amount of about Rs 6,084 crore for 377 issues that were assigned ‘non-investment grade’ ratings.
AAA rating is assigned to highest-quality bonds that face the lowest risk of default, while ‘non-investment grade’ applies to the low-quality issues. An AAA rating is followed by ‘High Safety (AA)’, Adequate Safety (A)’ and ‘Moderate Safety (BBB)’.
For April-July period, 102 issues got high-safety (AA) rating, 47 were ‘adequate safety (A)’ and 144 got ‘moderate safety (BBB)’ ratings. Read More
Investments into Indian shares through participatory notes (P-Notes), a preferred route for High Networth Investors and hedge funds from abroad, rose to Rs 1.48 lakh crore (about USD 24 billion) in July.
According to the latest data released by the Securities and Exchange Board of India (Sebi), the total value of P-Note investments in Indian markets (equity, debt and derivatives) increased to Rs 1,48,118 crore at the end of July after hitting a 11-month low of Rs 1.47 lakh crore in June.
P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to invest in Indian markets through registered Foreign Institutional Investors (FIIs), while saving on time and costs associated with direct registrations.
Besides, the value of P-Notes issued with derivatives as underlying, stood at Rs 94,814 crore at July-end. Read More
Investments into Indian shares through participatory notes (P-Notes), a preferred route for HNIs and hedge funds from abroad, hit an 11-month low of Rs 1.47 lakh crore (about USD 25 billion) in June.
According to the latest data released by the Securities and Exchange Board of India (Sebi), the total value of P-Note investments in Indian markets (equity, debt and derivatives) declined to Rs 1,47,498 crore at the end of June after hitting a six-month high of Rs 1.68 lakh crore in May.
The June figure has reached the lowest level since July 2012, when the cumulative value of such investments stood at Rs 1.29 lakh crore.
P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to investin Indian markets through registered Foreign Institutional Investors (FIIs), while saving on time and costs associated with direct registrations. Read More
After the noted jewellery retailer has seen his market cap drop to a mere Rs 1200 crore, against an annual revenue of Rs 10,000 cr. A Bombay bull known for oversized bets in AP Paper Mills and Aban Loyd is believed to have been badly trapped in the counter. So large are his positions in the counter-declared and Benami that they cannot be settled within the official framework. Forensic sleuths from Sebi in convivance with the honchos from BSE and NSE are probing the developments. All this may be true or totally fallacious but it is doing little to boost the psyche of the shareholders that comprise the float of roughly Rs 500 crore and who see their investment value plunge 5 per cent daily on volumes of 1200 shares.
Extensive collateral damage has been caused to the financial system including the host of brokers who are counterparties or just honest investors. They are surely getting margin calls daily as are the promoters.
Hearsay has it that large lots of Gitanjali are available for settlement at Rs 60 per share. If true, it does not seem likely that the stock sinks even below such whispered levels.
High time the GOI, CCI, Min Of Corp Affairs, Sebi and Exchanges intervened to stop the sham called :Gitanjali”. The stock should be suspended from trade, till malicious rumours get taken care of.
Investments into Indian shares through participatory notes (P-Notes), a preferred route for HNIs and hedge funds from abroad, hit six-month high of Rs 1.68 lakh crore (about USD 28 billion) in May.
According to the latest data released by the Securities and Exchange Board of India (Sebi), the total value of P-Note investments in Indian markets (equity, debt and derivatives) rose to 1,68,263 crore at the end of May.
The May figure has reached highest level since November, when the cumulative value of such investments stood at Rs 1.77 lakh crore.
At the end of April, foreign investments into Indian markets through P-Notes stood at Rs 1.57 lakh crore. Read More
India’s capital market regulator on Tuesday tightened the norms for share buybacks, moving to arrest suspected misuse of stock repurchases by listed companies in recent years.
Companies would have to ensure they spend at least 50% of the money earmarked for buybacks, the Securities and Exchange Board of India (Sebi) said after a board meeting. That doubles the current minimum of 25%.
Sebi’s new rules will require companies opting to buy back shares to create an escrow account in which they would need to keep at least 25% of the amount earmarked for the repurchases.
Should they fail to meet the 50% target, they would forfeit a sum equivalent to 2.5% of the amount allotted for the buybacks.
In a buyback, a company repurchases shares from securities holders, employees or on the open market, primarily to return surplus cash to shareholders, support the stock price during market weakness, or increase the value of underlying shares. Read More
Overseas investors have pulled out a staggering Rs 29,191 crore (over USD 5 billion) from the Indian debt and equities in less than a month due to weakness in the rupee.
During 3-21 June, foreign institutional investors (FIIs) were gross buyers of debt securities worth Rs 8,385 crore, while they sold bonds amounting to Rs 32,549 crore translating to a net outflow of Rs 24,163 crore (USD 4.2 billion), as per Securities and Exchange Board of India (Sebi) data.
Moreover, FIIs have taken away Rs 5,028 crore (USD 848 million) from the equity market in June so far.
However, the total foreign investment in the country’s equity market is still Rs 78,176 crore (USD 14.5 billion) so far this year.
Market experts attributed the huge sell-off to weakness in Indian currency, which is instrumental in FIIs exiting the debt markets as rising cost of hedging a volatile rupee hurts the yield differential the FIIs work with. Read More
Foreign institutional investors may no longer need to register with the Securities and Exchange Board of India when looking to invest in the country.
A committee under the Chairmanship of former Cabinet Secretary K. M. Chandrasekhar has recommended doing away with prior direct registration of FIIs and Sub Accounts with Sebi, according to a press release on the regulator’s website.
The committee has also recommended merging FIIs, Sub Accounts and Qualified Foreign Investors (QFI) into a new investor class to be called the “Foreign Portfolio Investor.”
“…FPIs would be able to register themselves with and transact through Designated Depository Participants (DDPs). The qualification of DDPs would be as prescribed by SEBI,” said the press release.
Additionally, the committee has recommended a 10% rule to define portfolio investments. Any investment beyond the threshold of 10% in a company’s equity shall be considered as Foreign Direct Investment (FDI). Read More